Abstract
This paper discusses briefly the geographic, demographic, economic, and energy situation in Indonesia. The indigenous energy production and reserve of primary energy are shown, including those which are used for the electricity generation. The gradual shifting from oil to other primary forms of primary energy, particularly to natural gas and coal to supply the domestic energy demand is clearly shown from the national energy. The potential of new and renewable energy are also identified. Particular study to identify the potential of biomass including peat and the type of biomass that is most available for immediate utilizations is carried out. Particular discussion concerning the potential of biomass or peat coal co-fuel to insure the reliable supply, fuel characteristics improvement, and CO2 emission reduction is made.